Secure and Fair Enforcement Banking Act of 2021 or the SAFE Banking Act of 2021
This bill generally prohibits a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate cannabis-related business. Prohibited penalties include terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides financial services to a legitimate cannabis-related business and prohibiting or otherwise discouraging a depository institution from offering financial services to such a business.
Additionally, proceeds from a transaction involving activities of a legitimate cannabis-related business are not considered proceeds from unlawful activity. Proceeds from unlawful activity are subject to anti-money laundering laws.
Furthermore, a depository institution is not, under federal law, liable or subject to asset forfeiture for providing a loan or other financial services to a legitimate cannabis-related business.
The bill also provides that a federal banking agency may not request or order a depository institution to terminate a customer account unless (1) the agency has a valid reason for doing so, and (2) that reason is not based solely on reputation risk. Valid reasons for terminating an account include threats to national security and involvement in terrorist financing, including state sponsorship of terrorism.
Finally, the bill decreases the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.)
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1996 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1996
To create protections for financial institutions that provide financial
services to cannabis-related legitimate businesses and service
providers for such businesses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 18, 2021
Mr. Perlmutter (for himself, Ms. Velazquez, Mr. Stivers, Mr. Davidson,
Mr. Blumenauer, Ms. Lee of California, Mr. Joyce of Ohio, Mr. Correa,
Mrs. Carolyn B. Maloney of New York, Mr. Meuser, Mr. Casten, Ms.
Bonamici, Mrs. Lawrence, Mr. Lawson of Florida, Mr. Panetta, Ms.
Matsui, Mr. Espaillat, Mr. Gaetz, Mr. Crist, Mrs. Watson Coleman, Mr.
Foster, Mr. Vargas, Ms. Clarke of New York, Ms. Houlahan, Mr. Kilmer,
Ms. Stevens, Ms. Norton, Mr. Hastings, Ms. Slotkin, Ms. Titus, Mr.
Welch, Mr. Sherman, Ms. Brownley, Mr. Carbajal, Mr. Huffman, Mr.
Neguse, Ms. Strickland, Ms. Wild, Mr. Garcia of Illinois, Mr. DeFazio,
Mr. Evans, Ms. Moore of Wisconsin, Ms. Clark of Massachusetts, Mr.
Grijalva, Mr. Meeks, Ms. Dean, Mr. Tonko, Mr. Young, Ms. Schakowsky,
Mr. Gallego, Ms. Blunt Rochester, Ms. Tlaib, Mr. Peters, Mrs. Trahan,
Mrs. Dingell, Miss Rice of New York, Mr. Reschenthaler, Mr. David Scott
of Georgia, Mr. Thompson of California, Ms. DeGette, Ms. Scanlon, Mr.
Higgins of New York, Ms. Speier, Mrs. Axne, Mr. Vicente Gonzalez of
Texas, Ms. Mace, Ms. McCollum, Mr. Lowenthal, Mr. McGovern, Ms.
Pressley, Mr. Garamendi, Mr. Lieu, Mrs. Luria, Mr. Himes, Mr. Crow, Mr.
Levin of Michigan, Ms. Williams of Georgia, Mr. Rodney Davis of
Illinois, Mr. Auchincloss, Mr. Barr, Mrs. Hayes, Mr. Gibbs, Mr.
McClintock, Mr. DeSaulnier, Mr. Courtney, Ms. Kuster, Mr. Morelle, Mr.
Pascrell, Mr. Jones, Ms. Wexton, Mr. Beyer, Mr. Krishnamoorthi, Mr.
Cicilline, Mr. Brendan F. Boyle of Pennsylvania, Ms. DelBene, Mr.
Raskin, Mr. Quigley, Mr. Case, Mr. Kildee, Mr. Bera, Miss Gonzalez-
Colon, Mrs. Kirkpatrick, Mr. Cleaver, Ms. Lois Frankel of Florida, Mr.
Stanton, Mr. Swalwell, Mr. Jeffries, and Mr. Yarmuth) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committee on the Judiciary, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To create protections for financial institutions that provide financial
services to cannabis-related legitimate businesses and service
providers for such businesses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; PURPOSE.
(a) Short Title.--This Act may be cited as the ``Secure And Fair
Enforcement Banking Act of 2021'' or the ``SAFE Banking Act of 2021''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents; purpose.
Sec. 2. Safe harbor for depository institutions.
Sec. 3. Protections for ancillary businesses.
Sec. 4. Protections under Federal law.
Sec. 5. Rules of construction.
Sec. 6. Requirements for filing suspicious activity reports.
Sec. 7. Guidance and examination procedures.
Sec. 8. Annual diversity and inclusion report.
Sec. 9. GAO study on diversity and inclusion.
Sec. 10. GAO study on effectiveness of certain reports on finding
certain persons.
Sec. 11. Application of this Act with respect to hemp-related
legitimate businesses and hemp-related
service providers.
Sec. 12. Banking services for hemp-related legitimate businesses and
hemp-related service providers.
Sec. 13. Requirements for deposit account termination requests and
orders.
Sec. 14. Definitions.
(c) Purpose.--The purpose of this Act is to increase public safety
by ensuring access to financial services to cannabis-related legitimate
businesses and service providers and reducing the amount of cash at
such businesses.
SEC. 2. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS.
(a) In General.--A Federal banking regulator may not--
(1) terminate or limit the deposit insurance or
share insurance of a depository institution under the
Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.),
the Federal Credit Union Act (12 U.S.C. 1751 et seq.),
or take any other adverse action against a depository
institution under section 8 of the Federal Deposit
Insurance Act (12 U.S.C. 1818) solely because the
depository institution provides or has provided
financial services to a cannabis-related legitimate
business or service provider;
(2) prohibit, penalize, or otherwise discourage a
depository institution from providing financial
services to a cannabis-related legitimate business or
service provider or to a State, political subdivision
of a State, or Indian Tribe that exercises jurisdiction
over cannabis-related legitimate businesses;
(3) recommend, incentivize, or encourage a
depository institution not to offer financial services
to an account holder, or to downgrade or cancel the
financial services offered to an account holder solely
because--
(A) the account holder is a cannabis-
related legitimate business or service
provider, or is an employee, owner, or operator
of a cannabis-related legitimate business or
service provider;
(B) the account holder later becomes an
employee, owner, or operator of a cannabis-
related legitimate business or service
provider; or
(C) the depository institution was not
aware that the account holder is an employee,
owner, or operator of a cannabis-related
legitimate business or service provider;
(4) take any adverse or corrective supervisory
action on a loan made to--
(A) a cannabis-related legitimate business
or service provider, solely because the
business is a cannabis-related legitimate
business or service provider;
(B) an employee, owner, or operator of a
cannabis-related legitimate business or service
provider, solely because the employee, owner,
or operator is employed by, owns, or operates a
cannabis-related legitimate business or service
provider, as applicable; or
(C) an owner or operator of real estate or
equipment that is leased to a cannabis-related
legitimate business or service provider, solely
because the owner or operator of the real
estate or equipment leased the equipment or
real estate to a cannabis-related legitimate
business or service provider, as applicable; or
(5) prohibit or penalize a depository institution
(or entity performing a financial service for or in
association with a depository institution) for, or
otherwise discourage a depository institution (or
entity performing a financial service for or in
association with a depository institution) from,
engaging in a financial service for a cannabis-related
legitimate business or service provider.
(b) Safe Harbor Applicable to De Novo Institutions.--Subsection (a)
shall apply to an institution applying for a depository institution
charter to the same extent as such subsection applies to a depository
institution.
SEC. 3. PROTECTIONS FOR ANCILLARY BUSINESSES.
For the purposes of sections 1956 and 1957 of title 18, United
States Code, and all other provisions of Federal law, the proceeds from
a transaction involving activities of a cannabis-related legitimate
business or service provider shall not be considered proceeds from an
unlawful activity solely because--
(1) the transaction involves proceeds from a cannabis-
related legitimate business or service provider; or
(2) the transaction involves proceeds from--
(A) cannabis-related activities described in
section 14(4)(B) conducted by a cannabis-related
legitimate business; or
(B) activities described in section 14(13)(A)
conducted by a service provider.
SEC. 4. PROTECTIONS UNDER FEDERAL LAW.
(a) In General.--With respect to providing a financial service to a
cannabis-related legitimate business (where such cannabis-related
legitimate business operates within a State, political subdivision of a
State, or Indian country that allows the cultivation, production,
manufacture, sale, transportation, display, dispensing, distribution,
or purchase of cannabis pursuant to a law or regulation of such State,
political subdivision, or Indian Tribe that has jurisdiction over the
Indian country, as applicable) or a service provider (wherever
located), a depository institution, entity performing a financial
service for or in association with a depository institution, or insurer
that provides a financial service to a cannabis-related legitimate
business or service provider, and the officers, directors, and
employees of that depository institution, entity, or insurer may not be
held liable pursuant to any Federal law or regulation--
(1) solely for providing such a financial service; or
(2) for further investing any income derived from such a
financial service.
(b) Protections for Federal Reserve Banks and Federal Home Loan
Banks.--With respect to providing a service to a depository institution
that provides a financial service to a cannabis-related legitimate
business (where such cannabis-related legitimate business operates
within a State, political subdivision of a State, or Indian country
that allows the cultivation, production, manufacture, sale,
transportation, display, dispensing, distribution, or purchase of
cannabis pursuant to a law or regulation of such State, political
subdivision, or Indian Tribe that has jurisdiction over the Indian
country, as applicable) or service provider (wherever located), a
Federal reserve bank or Federal Home Loan Bank, and the officers,
directors, and employees of the Federal reserve bank or Federal Home
Loan Bank, may not be held liable pursuant to any Federal law or
regulation--
(1) solely for providing such a service; or
(2) for further investing any income derived from such a
service.
(c) Protections for Insurers.--With respect to engaging in the
business of insurance within a State, political subdivision of a State,
or Indian country that allows the cultivation, production, manufacture,
sale, transportation, display, dispensing, distribution, or purchase of
cannabis pursuant to a law or regulation of such State, political
subdivision, or Indian Tribe that has jurisdiction over the Indian
country, as applicable, an insurer that engages in the business of
insurance with a cannabis-related legitimate business or service
provider or who otherwise engages with a person in a transaction
permissible under State law related to cannabis, and the officers,
directors, and employees of that insurer may not be held liable
pursuant to any Federal law or regulation--
(1) solely for engaging in the business of insurance; or
(2) for further investing any income derived from the
business of insurance.
(d) Forfeiture.--
(1) Depository institutions.--A depository institution that
has a legal interest in the collateral for a loan or another
financial service provided to an owner, employee, or operator
of a cannabis-related legitimate business or service provider,
or to an owner or operator of real estate or equipment that is
leased or sold to a cannabis-related legitimate business or
service provider, shall not be subject to criminal, civil, or
administrative forfeiture of that legal interest pursuant to
any Federal law for providing such loan or other financial
service.
(2) Federal reserve banks and federal home loan banks.--A
Federal reserve bank or Federal Home Loan Bank that has a legal
interest in the collateral for a loan or another financial
service provided to a depository institution that provides a
financial service to a cannabis-related legitimate business or
service provider, or to an owner or operator of real estate or
equipment that is leased or sold to a cannabis-related
legitimate business or service provider, shall not be subject
to criminal, civil, or administrative forfeiture of that legal
interest pursuant to any Federal law for providing such loan or
other financial service.
SEC. 5. RULES OF CONSTRUCTION.
(a) No Requirement To Provide Financial Services.--Nothing in this
Act shall require a depository institution, entity performing a
financial service for or in association with a depository institution,
or insurer to provide financial services to a cannabis-related
legitimate business, service provider, or any other business.
(b) General Examination, Supervisory, and Enforcement Authority.--
Nothing in this Act may be construed in any way as limiting or
otherwise restricting the general examination, supervisory, and
enforcement authority of the Federal banking regulators, provided that
the basis for any supervisory or enforcement action is not the
provision of financial services to a cannabis-related legitimate
business or service provider.
(c) Business of Insurance.--Nothing in this Act shall interfere
with the regulation of the business of insurance in accordance with the
Act of March 9, 1945 (59 Stat. 33, chapter 20; 15 U.S.C. 1011 et seq.)
(commonly known as the ``McCarran-Ferguson Act'') and the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et
seq.).
SEC. 6. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY REPORTS.
Section 5318(g) of title 31, United States Code, is amended by
adding at the end the following:
``(5) Requirements for cannabis-related legitimate
businesses.--
``(A) In general.--With respect to a financial
institution or any director, officer, employee, or
agent of a financial institution that reports a
suspicious transaction pursuant to this subsection, if
the reason for the report relates to a cannabis-related
legitimate business or service provider, the report
shall comply with appropriate guidance issued by the
Financial Crimes Enforcement Network. Not later than
the end of the 180-day period beginning on the date of
enactment of this paragraph, the Secretary shall update
the February 14, 2014, guidance titled `BSA
Expectations Regarding Marijuana-Related Businesses'
(FIN-2014-G001) to ensure that the guidance is
consistent with the purpose and intent of the SAFE
Banking Act of 2021 and does not significantly inhibit
the provision of financial services to a cannabis-
related legitimate business or service provider in a
State, political subdivision of a State, or Indian
country that has allowed the cultivation, production,
manufacture, transportation, display, dispensing,
distribution, sale, or purchase of cannabis pursuant to
law or regulation of such State, political subdivision,
or Indian Tribe that has jurisdiction over the Indian
country.
``(B) Definitions.--For purposes of this paragraph:
``(i) Cannabis.--The term `cannabis' has
the meaning given the term `marihuana' in
section 102 of the Controlled Substances Act
(21 U.S.C. 802).
``(ii) Cannabis-related legitimate
business.--The term `cannabis-related
legitimate business' has the meaning given that
term in section 14 of the SAFE Banking Act of
2021.
``(iii) Indian country.--The term `Indian
country' has the meaning given that term in
section 1151 of title 18.
``(iv) Indian tribe.--The term `Indian
Tribe' has the meaning given that term in
section 102 of the Federally Recognized Indian
Tribe List Act of 1994 (25 U.S.C. 479a).
``(v) Financial service.--The term
`financial service' has the meaning given that
term in section 14 of the SAFE Banking Act of
2021.
``(vi) Service provider.--The term `service
provider' has the meaning given that term in
section 14 of the SAFE Banking Act of 2021.
``(vii) State.--The term `State' means each
of the several States, the District of
Columbia, the Commonwealth of Puerto Rico, and
any territory or possession of the United
States.''.
SEC. 7. GUIDANCE AND EXAMINATION PROCEDURES.
Not later than 180 days after the date of enactment of this Act,
the Financial Institutions Examination Council shall develop uniform
guidance and examination procedures for depository institutions that
provide financial services to cannabis-related legitimate businesses
and service providers.
SEC. 8. ANNUAL DIVERSITY AND INCLUSION REPORT.
The Federal banking regulators shall issue an annual report to
Congress containing--
(1) information and data on the availability of access to
financial services for minority-owned and women-owned cannabis-
related legitimate businesses; and
(2) any regulatory or legislative recommendations for
expanding access to financial services for minority-owned and
women-owned cannabis-related legitimate businesses.
SEC. 9. GAO STUDY ON DIVERSITY AND INCLUSION.
(a) Study.--The Comptroller General of the United States shall
carry out a study on the barriers to marketplace entry, including in
the licensing process, and the access to financial services for
potential and existing minority-owned and women-owned cannabis-related
legitimate businesses.
(b) Report.--The Comptroller General shall issue a report to the
Congress--
(1) containing all findings and determinations made in
carrying out the study required under subsection (a); and
(2) containing any regulatory or legislative
recommendations for removing barriers to marketplace entry,
including in the licensing process, and expanding access to
financial services for potential and existing minority-owned
and women-owned cannabis-related legitimate businesses.
SEC. 10. GAO STUDY ON EFFECTIVENESS OF CERTAIN REPORTS ON FINDING
CERTAIN PERSONS.
Not later than 2 years after the date of the enactment of this Act,
the Comptroller General of the United States shall carry out a study on
the effectiveness of reports on suspicious transactions filed pursuant
to section 5318(g) of title 31, United States Code, at finding
individuals or organizations suspected or known to be engaged with
transnational criminal organizations and whether any such engagement
exists in a State, political subdivision, or Indian Tribe that has
jurisdiction over Indian country that allows the cultivation,
production, manufacture, sale, transportation, display, dispensing,
distribution, or purchase of cannabis. The study shall examine reports
on suspicious transactions as follows:
(1) During the period of 2014 until the date of the
enactment of this Act, reports relating to marijuana-related
businesses.
(2) During the 1-year period after date of the enactment of
this Act, reports relating to cannabis-related legitimate
businesses.
SEC. 11. APPLICATION OF THIS ACT WITH RESPECT TO HEMP-RELATED
LEGITIMATE BUSINESSES AND HEMP-RELATED SERVICE PROVIDERS.
(a) In General.--The provisions of this Act (other than sections 6
and 10) shall apply with respect to hemp-related legitimate businesses
and hemp-related service providers in the same manner as such
provisions apply with respect to cannabis-related legitimate businesses
and service providers.
(b) Definitions.--In this section:
(1) CBD.--The term ``CBD'' means cannabidiol.
(2) Hemp.--The term ``hemp'' has the meaning given that
term under section 297A of the Agricultural Marketing Act of
1946 (7 U.S.C. 1639o).
(3) Hemp-related legitimate business.--The term ``hemp-
related legitimate business'' means a manufacturer, producer,
or any person or company that--
(A) engages in any activity described in
subparagraph (B) in conformity with the Agricultural
Improvement Act of 2018 (Public Law 115-334) and the
regulations issued to implement such Act by the
Department of Agriculture, where applicable, and the
law of a State or political subdivision thereof or
Indian Tribe; and
(B) participates in any business or organized
activity that involves handling hemp, hemp-derived CBD
products, and other hemp-derived cannabinoid products,
including cultivating, producing, extracting,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing hemp, hemp-
derived CBD products, and other hemp-derived
cannabinoid products.
(4) Hemp-related service provider.--The term ``hemp-related
service provider''--
(A) means a business, organization, or other person
that--
(i) sells goods or services to a hemp-
related legitimate business; or
(ii) provides any business services,
including the sale or lease of real or any
other property, legal or other licensed
services, or any other ancillary service,
relating to hemp, hemp-derived CBD products, or
other hemp-derived cannabinoid products; and
(B) does not include a business, organization, or
other person that participates in any business or
organized activity that involves handling hemp, hemp-
derived CBD products, or other hemp-derived cannabinoid
products, including cultivating, producing,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing hemp, hemp-
derived CBD products, and other hemp-derived
cannabinoid products.
SEC. 12. BANKING SERVICES FOR HEMP-RELATED LEGITIMATE BUSINESSES AND
HEMP-RELATED SERVICE PROVIDERS.
(a) Findings.--The Congress finds that--
(1) the Agriculture Improvement Act of 2018 (Public Law
115-334) legalized hemp by removing it from the definition of
``marihuana'' under the Controlled Substances Act;
(2) despite the legalization of hemp, some hemp businesses
(including producers, manufacturers, and retailers) continue to
have difficulty gaining access to banking products and
services; and
(3) businesses involved in the sale of hemp-derived CBD
products are particularly affected, due to confusion about the
legal status of such products.
(b) Federal Banking Regulators' Hemp Banking Guidance.--Not later
than the end of the 90-day period beginning on the date of enactment of
this Act, the Federal banking regulators shall update their existing
guidance, as applicable, regarding the provision of financial services
to hemp-related legitimate businesses and hemp-related service
providers to address--
(1) compliance with financial institutions' existing
obligations under Federal laws and implementing regulations
determined relevant by the Federal banking regulators,
including subchapter II of chapter 53 of title 31, United
States Code, and its implementing regulation in conformity with
this Act and the Department of Agriculture's rules regulating
domestic hemp production (7 C.F.R. 990); and
(2) best practices for financial institutions to follow
when providing financial services, including processing
payments, to hemp-related legitimate businesses and hemp-
related service providers.
(c) Definitions.--In this section:
(1) Financial institution.--The term ``financial
institution''--
(A) has the meaning given that term under section
5312(a) of title 31, United States Code; and
(B) includes a bank holding company, as defined
under section 2(a) of the Bank Holding Company Act of
1956 (12 U.S.C. 1841(a)).
(2) Hemp terms.--The terms ``CBD'', ``hemp'', ``hemp-
related legitimate business'', and ``hemp-related service
provider'' have the meaning given those terms, respectively,
under section 11.
SEC. 13. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMINATION REQUESTS AND
ORDERS.
(a) Termination Requests or Orders Must Be Valid.--
(1) In general.--An appropriate Federal banking agency may
not formally or informally request or order a depository
institution to terminate a specific customer account or group
of customer accounts or to otherwise restrict or discourage a
depository institution from entering into or maintaining a
banking relationship with a specific customer or group of
customers unless--
(A) the agency has a valid reason for such request
or order; and
(B) such reason is not based solely on reputation
risk.
(2) Treatment of national security threats.--If an
appropriate Federal banking agency believes a specific customer
or group of customers is, or is acting as a conduit for, an
entity which--
(A) poses a threat to national security;
(B) is involved in terrorist financing;
(C) is an agency of the Government of Iran, North
Korea, Syria, or any country listed from time to time
on the State Sponsors of Terrorism list;
(D) is located in, or is subject to the
jurisdiction of, any country specified in subparagraph
(C); or
(E) does business with any entity described in
subparagraph (C) or (D), unless the appropriate Federal
banking agency determines that the customer or group of
customers has used due diligence to avoid doing
business with any entity described in subparagraph (C)
or (D),
such belief shall satisfy the requirement under paragraph (1).
(b) Notice Requirement.--
(1) In general.--If an appropriate Federal banking agency
formally or informally requests or orders a depository
institution to terminate a specific customer account or a group
of customer accounts, the agency shall--
(A) provide such request or order to the
institution in writing; and
(B) accompany such request or order with a written
justification for why such termination is needed,
including any specific laws or regulations the agency
believes are being violated by the customer or group of
customers, if any.
(2) Justification requirement.--A justification described
under paragraph (1)(B) may not be based solely on the
reputation risk to the depository institution.
(c) Customer Notice.--
(1) Notice required.--Except as provided under paragraph
(2) or as otherwise prohibited from being disclosed by law, if
an appropriate Federal banking agency orders a depository
institution to terminate a specific customer account or a group
of customer accounts, the depository institution shall inform
the specific customer or group of customers of the
justification for the customer's account termination described
under subsection (b).
(2) Notice prohibited.--
(A) Notice prohibited in cases of national
security.--If an appropriate Federal banking agency
requests or orders a depository institution to
terminate a specific customer account or a group of
customer accounts based on a belief that the customer
or customers pose a threat to national security, or are
otherwise described under subsection (a)(2), neither
the depository institution nor the appropriate Federal
banking agency may inform the customer or customers of
the justification for the customer's account
termination.
(B) Notice prohibited in other cases.--If an
appropriate Federal banking agency determines that the
notice required under paragraph (1) may interfere with
an authorized criminal investigation, neither the
depository institution nor the appropriate Federal
banking agency may inform the specific customer or
group of customers of the justification for the
customer's account termination.
(d) Reporting Requirement.--Each appropriate Federal banking agency
shall issue an annual report to the Congress stating--
(1) the aggregate number of specific customer accounts that
the agency requested or ordered a depository institution to
terminate during the previous year; and
(2) the legal authority on which the agency relied in
making such requests and orders and the frequency on which the
agency relied on each such authority.
(e) Definitions.--For purposes of this section:
(1) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' means--
(A) the appropriate Federal banking agency, as
defined under section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813); and
(B) the National Credit Union Administration, in
the case of an insured credit union.
(2) Depository institution.--The term ``depository
institution'' means--
(A) a depository institution, as defined under
section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813); and
(B) an insured credit union.
SEC. 14. DEFINITIONS.
In this Act:
(1) Business of insurance.--The term ``business of
insurance'' has the meaning given such term in section 1002 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act
(12 U.S.C. 5481).
(2) Cannabis.--The term ``cannabis'' has the meaning given
the term ``marihuana'' in section 102 of the Controlled
Substances Act (21 U.S.C. 802).
(3) Cannabis product.--The term ``cannabis product'' means
any article which contains cannabis, including an article which
is a concentrate, an edible, a tincture, a cannabis-infused
product, or a topical.
(4) Cannabis-related legitimate business.--The term
``cannabis-related legitimate business'' means a manufacturer,
producer, or any person or company that--
(A) engages in any activity described in
subparagraph (B) pursuant to a law established by a
State or a political subdivision of a State, as
determined by such State or political subdivision; and
(B) participates in any business or organized
activity that involves handling cannabis or cannabis
products, including cultivating, producing,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing cannabis or
cannabis products.
(5) Depository institution.--The term ``depository
institution'' means--
(A) a depository institution as defined in section
3(c) of the Federal Deposit Insurance Act (12 U.S.C.
1813(c));
(B) a Federal credit union as defined in section
101 of the Federal Credit Union Act (12 U.S.C. 1752);
or
(C) a State credit union as defined in section 101
of the Federal Credit Union Act (12 U.S.C. 1752).
(6) Federal banking regulator.--The term ``Federal banking
regulator'' means each of the Board of Governors of the Federal
Reserve System, the Bureau of Consumer Financial Protection,
the Federal Deposit Insurance Corporation, the Federal Housing
Finance Agency, the Financial Crimes Enforcement Network, the
Office of Foreign Asset Control, the Office of the Comptroller
of the Currency, the National Credit Union Administration, the
Department of the Treasury, or any Federal agency or department
that regulates banking or financial services, as determined by
the Secretary of the Treasury.
(7) Financial service.--The term ``financial service''--
(A) means a financial product or service, as
defined in section 1002 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5481),
regardless if the customer receiving the product or
service is a consumer or commercial entity;
(B) means a financial product or service, or any
combination of products and services, permitted to be
provided by--
(i) a national bank or a financial
subsidiary pursuant to the authority provided
under--
(I) the provision designated
``Seventh'' of section 5136 of the
Revised Statutes of the United States
(12 U.S.C. 24); or
(II) section 5136A of the Revised
Statutes of the United States (12
U.S.C. 24a); and
(ii) a Federal credit union, pursuant to
the authority provided under the Federal Credit
Union Act;
(C) includes the business of insurance;
(D) includes, whether performed directly or
indirectly, the authorizing, processing, clearing,
settling, billing, transferring for deposit,
transmitting, delivering, instructing to be delivered,
reconciling, collecting, or otherwise effectuating or
facilitating of payments or funds, where such payments
or funds are made or transferred by any means,
including by the use of credit cards, debit cards,
other payment cards, or other access devices, accounts,
original or substitute checks, or electronic funds
transfers;
(E) includes acting as a money transmitting
business which directly or indirectly makes use of a
depository institution in connection with effectuating
or facilitating a payment for a cannabis-related
legitimate business or service provider in compliance
with section 5330 of title 31, United States Code, and
any applicable State law; and
(F) includes acting as an armored car service for
processing and depositing with a depository institution
or a Federal reserve bank with respect to any monetary
instruments (as defined under section 1956(c)(5) of
title 18, United States Code.
(8) Indian country.--The term ``Indian country'' has the
meaning given that term in section 1151 of title 18.
(9) Indian tribe.--The term ``Indian Tribe'' has the
meaning given that term in section 102 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a).
(10) Insurer.--The term ``insurer'' has the meaning given
that term under section 313(r) of title 31, United States Code.
(11) Manufacturer.--The term ``manufacturer'' means a
person who manufactures, compounds, converts, processes,
prepares, or packages cannabis or cannabis products.
(12) Producer.--The term ``producer'' means a person who
plants, cultivates, harvests, or in any way facilitates the
natural growth of cannabis.
(13) Service provider.--The term ``service provider''--
(A) means a business, organization, or other person
that--
(i) sells goods or services to a cannabis-
related legitimate business; or
(ii) provides any business services,
including the sale or lease of real or any
other property, legal or other licensed
services, or any other ancillary service,
relating to cannabis; and
(B) does not include a business, organization, or
other person that participates in any business or
organized activity that involves handling cannabis or
cannabis products, including cultivating, producing,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing cannabis or
cannabis products.
(14) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, and any territory or possession of the United States.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Mr. Perlmutter moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H1915-1924)
DEBATE - The House proceeded with forty minutes of debate on H.R. 1996.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
Considered as unfinished business. (consideration: CR H1942-1943)
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 321 - 101 (Roll no. 120).(text: CR H1915-1918)
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On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 321 - 101 (Roll no. 120). (text: CR H1915-1918)
Roll Call #120 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.